What's going to happen next?First, American economy won't become North Korea's one in a 24-hour span. Second, American economy is in a better shape than European or Japanese economies. Notwithstanding Congress' failure (or success) to address the economic turmoil, there are some issues Congress may discuss in order to remove hurdles preventing American economy to succeed.
- Tax reform: America's economy suffers daily from our very high tax burden, burdensome tax compliance. It's time to adopt a flat tax to fund all needs of Uncle Sam. It could be either a national sales tax or a flat income tax. Both options have advantages and disadvantages, that's why Congress should discuss that. But our lawmakers must have in their minds that any tax overhaul has to simplifying tax compliance, and ease the tax burden over American taxpayers' shoulder.
- Free trade: We must export, export, export! America needs to open up foreign markets to our goods. There are several key markets on Earth we haven't signed FTAs so far, like, Japan, European Union, Brazil, and India. Opening up those markets, worldwide known for their protectionism, will boost our exports, creating more jobs, shoring up our reserves, defusing anti-Americanism by enhanced commercial exchange, and so forth.
- Streamline regulation: Not only a heavy tax burden, and closed markets, American entrepreneurs must face titanic waves of regulations promoted to "protect" the "little guy", "consumer", "Mother Earth". We need to cut red tape, ensuring that regulations pass a cost-benefit test before independent reviewers. Moreover, regulations must have enforceable only for a limited period, and every subsequent renewal must undergo a cost-benefit test. It's also important to give Congress, courts tools to overhaul, or even override, regulations whose compliance became too cumbersome for those affected by them.
Making economy strong again is not bailing out some irresponsible borrowers, lenders in a socialist way. It's all about letting people free to pursue their dreams without harming each other.